Bank of America believes Atlantic Sapphire can more than triple in value

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Confidence from large investment bank.

Bank of America has initiated coverage of Atlantic Sapphire and set the price target at NOK 200, reports TDN Direkt.

On the eve of the stock exchange’s close on Tuesday, Atlantic Sapphire traded at NOK 116, having fallen by NOK 22 in the past week.

Analyst Alexander Jones expects capacity at the Miami facility to rise from 10,000 tonnes this year to 225,000 tonnes by 2035. That implies an average annual growth rate of 25 per-cent, he said.

“Today’s share price reflects only half of this based on a cash flow analysis,” Jones wrote.

He stressed that it “may come as a result of implementation risk and that the first 10,000 tonnes took over three years to produce.”

In a “bull scenario,” the analyst believes the stock could more than triple once project risk has come down. Jones describes the company as “a world leader in land-based fish farming” and “the most competitive producer in the U.S. market.”

On Monday, it was announced that Atlantic Sapphire’s executive vice president for farming, Dharma Rajeswaran, had received a new job title. He will now hold the role of “chief of staff” at the company. Rajeswaran is replaced by CEO Johan E. Andreassen’s partner and co-founder, Bjørn-Vegard Løvik.